Using this approach, the company said Applied Digital (APLD), TeraWulf (WULF) and Cipher Mining (CIFR) appear to offer the greatest disconnect between their contracted businesses and current valuations. In each case, Compass Point asserts that the market places little, if any, value on additional AI capacity that has not yet been leased, despite the potential for these projects to generate significant rental income once completed.
Core Scientific (CORZ) and Riot Platforms (RIOT) stand out for different reasons. Compass Point said Core Scientific’s existing contracts are already largely reflected in its valuation, meaning further upside will likely depend on signing new customers. Riot, meanwhile, is valued more on its future potential than current rental income, with investors placing a premium on its Corsicana campus and broader AI development pipeline, despite its relatively limited contractual capacity today.
The report claims that the next two years will be a turning point for the sector, as companies move from announcing AI infrastructure deals to making them happen. As projects are completed, tenants move in, and rent payments begin, investors will have a clearer idea of the recurring cash flow these facilities can generate. Successful companies could be rewarded with valuations more in line with other revenue-generating infrastructure assets.
